TL;DR
- Digital transformation is a complex and ongoing process that requires a comprehensive approach and a willingness to adapt to changing circumstances.
- It is not just about adopting new technologies but involves a complete overhaul of business models, processes and culture.
- Organizations must be agile, innovative and customer-centric to succeed in the digital age.
READ MORE: Digital Transformation: How to Succeed in Times of Exponential Change (The Digital Speaker)
Half of all CEOs believe that digital technologies pose an existential threat to their business but digital transformation is not just about implementing new technologies. It involves a fundamental shift in mindset and culture.
READ MORE: Winning today’s race while running tomorrow’s (PWC)
“The most significant challenge many organizations experience during their digital transformation efforts is the resistance of employees to change,” says strategic futurist Mark van Rijmenam, in a new blog post.
“Many employees may feel threatened by the changes and fear their jobs may be at risk,” he says. “It is essential to involve employees in the process and communicate the benefits of digital transformation. The change process must be well-planned and executed in a phased manner to minimize disruption to business operations.”
Implementing a digital transformation strategy is a significant undertaking for any organization and technologies such as AI, blockchain, the metaverse and the cloud have the potential to both revolutionize the industry and hugely disrupt it.
Nonetheless, despite advances in AI, robotics and other forms of automation, no organization is going to succeed in its digital transformation without taking its staff with it.
“One of the most significant challenges is the need for skilled talent to develop, implement, and maintain technologies like Blockchain, AI and cloud,” van Rijmenam says. “For example, the demand for AI and blockchain experts has far outstripped supply, leading to a shortage of skilled workers in these fields. Additionally, the complexity of these technologies can make it difficult for organizations to integrate them effectively into their existing systems and processes.
The rapid pace of tech change means that organizations must be agile and adaptable to keep up.
“This is why it is so important to invest in training and development programs to ensure that employees have the skills and knowledge necessary to work with emerging technologies instead of running away from them so that they can use them in their favor.”
This involves encouraging employees to take risks, try new things, and embrace continuous improvement. Agile organizations prioritize learning and development, providing employees with the tools and resources needed to stay up-to-date with the latest trends and technologies, and this practice is also one of the main HR trends of 2023.
READ MORE: Top 6 HR Trends For 2023 (Forbes)
“When demand for skilled workers outstrips supply, companies must compete to attract and retain their best employees,” says van Rijmenam.
He points out that many companies are still using hiring and retention practices that may not be effective in today’s digital age. To overcome this challenge, he says companies need to rethink their talent strategies, embracing new models of talent management that prioritize skills over credentials and foster a culture of lifelong learning.
READ MORE: The Great Attrition is making hiring harder. Are you searching the right talent pools? (McKinsey & Company)
Ultimately, business agility requires a focus on culture and the mindset of talent — especially leadership. It will take more than new technology to transform an organization.
“It requires developing a management system that puts agility at the forefront of its mission, instilling a healthy degree of confidence in leadership (so they don’t balk when times are tough), and ensuring that everyone is realistically aware of what agility really means.”
